Home CryptocurrencyAltcoin Bitcoin hits 3-week high as trader says ‘all signs are there’ to short BTC

Bitcoin hits 3-week high as trader says ‘all signs are there’ to short BTC

by SuperiorInvest

Bitcoin (BTC) were still rising at the September 12 Wall Street open as traders called for an immediate correction.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

$23,000 proves necessary to flip

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD attacking $22,481 on Bitstamp, the highest since August 19.

The pair held onto existing gains over the weekend, with the falling US dollar a catalyst for risk assets earlier in the week.

The S&P 500 and Nasdaq Composite Index rose 1.1% in the first two hours of trading. In contrast, the US dollar index (DXY) fell 0.7% on the day.

US Dollar Index (DXY) 1-day candlestick chart. Source: TradingView

Analyzing the situation, popular trader Crypto Ed said that now is the time for us to look at a corrective move on BTC/USD.

“I’d say all marks are for some shorts,” he told viewers in his latest YouTube update.

Upside potential was likely capped at $23,000, he suggested, while the downside is $20,800.

Meanwhile, the CME Bitcoin futures gap left after the September 10 close added the area around $21,400 as a possible retracement target.

“I would only look for longs if we break $23,000, then I would move to $28-29,000,” Crypto Ed added.

CME Bitcoin futures 1-hour candlestick chart with gap highlighted. Source: TradingView

He also expected Il Capo from Crypto to change the trend that day confirmed the conviction that the current price strength was simply a relief upswing in an entire bear market.

“Most people are getting bullish now. Remember, this is a short squeeze, a bounce that occurs during a bear market to then continue downtrend,” he tweeted.

“I still expect a bit higher (22,500-23,000) but will soon be fully bearish again.”

After closing the week above the realized price, BTC/USD now looked set to see a daily candle close to the 100-day moving average (MA) for the first time since April.

BTC/USD 1-day candlestick chart (Bitstamp) with 100-day MA. Source: TradingView

Ethereum is struggling with the merger countdown

Less inspiring, meanwhile, was the price action on Ethereum (ETH), which lost ground that day despite continued hype surrounding the merger.

Related: The Fed, The Merger And $22,000 BTC – 5 Things You Should Know About Bitcoin This Week

ETH/BTC 1 Day Candlestick Chart (Binance). Source: TradingView

ETH/USD is down 2.2% at the time of writing, while ETH/BTC has caught the attention of some market participants.

Bitcoin’s share of the total market capitalization of cryptocurrencies thus experienced a sharp rebound a day after reaching only 38.9%, the lowest value since January.

Bitcoin Market Cap Dominance 1 Week Candlestick Chart. Source: TradingView

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading step involves risk, you should do your own research when making a decision.

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